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The Role of Agriculture and Farm Household Diversification in the US Rural Economy

In: RURAL POLICIES AND EMPLOYMENT TransAtlantic Experiences

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  • Thomas G. Johnson

Abstract

This chapter explores the consequences of US farm and farm family diversification strategies, including the consequences for their rural communities. The chapter first reviews recent changes in US agriculture and rural communities, with a focus on the changing role of non-farm and off-farm activities of farm families. The evidence is strong that diversification strategies produce benefits for the farms, the farm families, and the communities where they live. Diversification has allowed farm families to increase and stabilize their incomes, invest more in their farms, and connect to their communities. Communities benefit from stronger and more stable labor forces, stronger tax bases, increased range of services, enhanced recreational opportunities, and better access to quality food. As external pressures from globalization, demographic change and climate change continue to challenge rural economies, adaptation and diversification will continue to be an important strategy. Policymakers should explore policies to support and encourage diversification.

Suggested Citation

  • Thomas G. Johnson, 2019. "The Role of Agriculture and Farm Household Diversification in the US Rural Economy," World Scientific Book Chapters, in: Sophia M Davidova & Kenneth J Thomson & Ashok K Mishra (ed.), RURAL POLICIES AND EMPLOYMENT TransAtlantic Experiences, chapter 20, pages 315-329, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9781786347091_0020
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    Cited by:

    1. Bingjie Song & Guy M. Robinson & Douglas K. Bardsley, 2020. "Measuring Multifunctional Agricultural Landscapes," Land, MDPI, vol. 9(8), pages 1-30, August.

    More about this item

    Keywords

    Rural Areas; Rural Development; Agriculture; Employment; Labor; Jobs; Common Agricultural Policy; European Union; United States;
    All these keywords.

    JEL classification:

    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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